The global economic this year, various crisis were the only reality. Throughout the years, these crisis have been produced from various fields, once occupying the center of which is the trade war between China and the United States. Although the preliminary trade talks between the two countries in the last month of the year gives a glimpse of the situation, it is still not enough. Because the China-US bipartisan global economic has created such a huge crisis that the whole world has to go a long way in overcoming it.
In the meantime, the global monetary fund has predicted that global GDP growth will fall from
3.2 percent to 3 percent. At the same time, global economic production will decrease by 0.8 percent. When this is the context, economists think the world economy is in crisis.
Many theorists view the current crisis in the global economy as the underlying crisis of capitalism. In this case, they are also asking for help from the socialist structure. Their focus is mainly on increasing income and wealth inequality.
According to the Global Inequality Index, less than 10 percent of the world’s population accounts for 84 percent of the total wealth. And 64 percent of people have only 2 percent of their wealth.
In this context, a section of economists calls for equal attention in both economic production and distribution. The other party is appearing for a grant economy. Their commentary, to strengthen the capital markets, must be done from within the framework. And that requires billionaires to be more generous.
Arguably, the world is now under capitalism. With the exception of the few, the main tune of the global economy is now tied to the wires of labor, private capital, decentralized and profitable production, wherein most major economies, the issue of labor unions is gradually becoming history. Labor unions have broken down because of too much profitable corporate capital. As a result, the opportunity for bargaining with wages has been reduced. As a result of this, increasing income and wealth inequality have appeared.
In this situation, a few hundred billionaires like Ray Dalio are openly discussing the capital’s new appearance. Their fears of mass movement are spreading all over the world. In a recent interview at the Greenwich Economic Forum, Ray Daley spoke directly of his apprehension. His call to the politicians of his country, “US politicians should declare existing wealth inequality as a national emergency and take action to counter it, or be prepared for violent protests, where we will all be subjected to killing one another.”
The fear of hundreds of billionaires like Ray Dalio is obvious. The immense profits of the existing corporate capital are going to crush the stomach of the golden egg. And even if it does not take long for the mountain of wealth to disappear. Therefore, they are proposing a reform, which means that the capitalists should lend their hand a little more, so that the money left in the hands of the poor is greater, as long as they are quiet. Keeping this cool is very important.
The main dispute is now between the two structures of capital. One is regulated capital, the other is liberal capital. One of them is the United States, the other is China. As with any doctrine in the history of the world, multiple clauses over time and the conflict between them is nothing new. Capitalism is no exception. Global capitalism – it is said in total but it involves two forms of conflict, one of which is different from the other – politics, economic and social genre.
The capitalist structures that follow in various countries including North America, Western Europe, Japan, Indonesia, India are known as liberals. In this section, almost all of the production system is left to private ownership. In this system, a pseudo-freedom is spoken in terms of merit development, wealth acquisition, equality of opportunity, etc.
In each case, the state favors the top wealth holders. This whole system is known as the liberal stream of capital. On the contrary, the model of state-controlled capitalism, of which China is the greatest example. Nearby capital structures are followed in countries like Myanmar, Singapore, Vietnam, Azerbaijan, Russia, Algeria, Rwanda. This system favors high economic growth but narrows the political and social rights of the individual. Suffice it to say, the United States and China are leading the two categories mentioned above.
